Australia / Industry Insights
Declining consumer sentiment negatively impacting ticket sales

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by Liam Green
Oct 16 2018

The Online Event Ticket Sales industry in Australia is anticipated to experience stable growth, despite fluctuations in consumer sentiment. 

“Rising ticket prices have discouraged consumers from attending live events over the past five years. Trends in discretionary income and consumer sentiment will primarily determine industry revenue,” declares IBISWorld Industry Analyst Tommy Wu.

The industry is characterised by firms that primarily sell, or resell, tickets to live events online. Such ticketed events include concerts, sporting events, live theatre and festivals. These firms generate revenue through fees charged to consumers for this service.

The Online Event Ticket Sales industry has benefited from consumers embracing online and mobile platforms for purchasing and conducting ticket transactions. Consumer demand for convenience, which has driven ticket selling firms online, has led ticket agencies to shift their operations almost exclusively online. This has allowed overall industry profitability to increase over the past five years, as technology-related costs diminish and wages decline as share of industry revenue due to rising ticket sale volumes. As a result, IBISWorld anticipates industry revenue to grow by an annualised 2.8% over the next five years, to $340.3 million.

Rising consumer concerns over appreciating ticket prices have meant that consumers have become more hesitant to purchase tickets to live events over the past five years. Live performance attendance rates have grown at a slower pace than ticket price rises over this period, negatively affected by consumer sentiment.  Consumer sentiment helps determine individuals’ willingness to purchase live performance tickets. Consumer sentiment has fluctuated over the past five years, as individuals have remained uncertain about Australia’s economic outlook and have been cautious about making discretionary purchases.

The Online Event Ticket Sales industry is heavily concentrated with two large players – Ticketek and Ticketmaster. These players are forecast to preserve their significant market power in the industry over the next five years, as they hold long-term contracts with major sporting venues and other entertainment companies. As the main selling agent for the AFL final series, Ticketek experienced nation-wide system failures that saw consumers unable to attain tickets, triggering widespread outrage. High-demand events, such as the AFL finals series, can slow down online ticketing websites due to internet speed and bandwidth constraints, which can prevent consumers from completing their ticket purchases. These constraints can lead buyers to forgo online ticket platforms in favour of telephone sales or retail outlets to ensure an easier and faster transaction. Consumer confidence in a firm’s technological infrastructure is expected to become a major determinant in industry revenue in the next five years.

Overall, revenue in the Online Event Ticket Sales industry in Australia is projected grow steadily, as consumers demand greater convenience that is offered by online and mobile ticketing platforms.

Industries mentioned in this report:

Online Event Ticket Sales in Australia